To Discourage Producing for Inventory, Management Can ________

Multiple Choice

To discourage producing for inventory, management can ________.

A) discourage using nonfinancial measures such as units in ending inventory compared to units in sales as nonfinancial measures may not be congruent with management performance goals
B) evaluate performance over a quarterly period rather than a single year
C) develop budgeting and planning activities that reduce management's freedom to inappropriately build inventory through increased production
D) implement absorption costing across all departments